What Canada, Mexico, Japan, the UK, and the European Union should do in response to Trump's grossly irresponsible tariffsDon't negotiate. Do this now so you'll be negotiating from a position of power
Friends, Trump has done it — imposing a 10 percent tariff on all trading partners as well as double-digits tariffs on dozens of other countries that Trump regime officials say have treated the United States “unfairly,” whatever that means. Also in his speech today, Trump confirmed that a 25 percent tariff on foreign-made automobiles would go into effect on Thursday, April 3. Imports of cars and car parts from Canada and Mexico will be especially affected. The tariffs will apply to more than 100 trading partners, including a staggering new 34 percent tariff on Chinese goods (on top of the 20 percent tariff Trump already imposed, bringing its total tariff rate on Chinese imports to a whopping 54 percent), a 20 percent tariff on imports from the European Union, a 24 percent on goods from Japan, and a 26 percent tariff on goods from India. Energy and certain minerals that not available in the United States will be excluded. Other products, like lumber, copper, semiconductors, pharmaceuticals and critical minerals could face additional tariffs. What are the consequences? It’s a colossally stupid move that will drive up prices for American consumers and manufacturers while eliciting retaliation from other nations. Stock and bond markets continue to slide. What should other nations do? My strong recommendation to Canada, Mexico, Japan, and the European Union is to join together to create a free trade zone that excludes the United States, imposing at least a 10 percent tariff on all imports from America, They should also threaten to limit American banks’ access to their public stock markets, put limits on what their citizens can invest in American companies annually, and increase taxes and regulations on American digital platforms. They will be tempted to negotiate, and do so individually. They should not. They need to negotiate from a position of strength. A non-U.S. free trade union will give them that strength. So glad you can be here today. Please consider becoming a paid subscriber of this community so we can do even more.
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